HP Ink sales are in the red: Total revenue down 11 per cent as CEO says coronavirus knackered supply chain The three months to April 30 were "complicated," HP Inc said on Wednesday while trying to explain why its sales dropped by double digits in its fiscal second quarter of 2020. Here's a summary of the bad news for the PC'n'printers industry grandee: Revenue of $12.5bn was down 11 per cent from the same period a year ago, and …
A neighbour has an HP subscription service that automatically sends new ink cartridges when telemetry indicates it necessary. Several times now he has asked me to print something urgently for him - as the HP supply chain has seized up.
Apparently HP are also still relying on ordinary Royal Mail to maintain fast deliveries. Unlike my Staffordshire oatcake supplier who has suspended Royal Mail deliveries for their freshly cooked products - and switched everything to next-day courier.
Well, I haven't thrown it in the landfill, it's gone in the "will be components when I can tear it down" box :-)
Bits I can't use will go in the WEEE skip and I have replaced it with a mono laser I rescued from someone else's skip :-) I'm green and mean.
Q2 has been an unmitigated disaster for HP.
There clearly are some major management errors due to a lack of focus on customers.
HP's inventory is up, there are millions of back order on supplies, laptop and printers that they state will only be solved in Q3.
By then the drivers for home printing (home schooling) will have gone and the wrong type of products will hit the market.
In the meantime there will be no revenues from supplies.
Print has declined so much that PC overtook Print for the first time in history in terms of Revenues.
Loss are around half a billion $.
They also announced more cost reduction and what amounts to office closures.
My bet is on Boise shutting down (they sold the site a couple of years ago and are just a tenant) and most print activities moving to Vancouver and Korea.
San Diego on the PC side will be under pressure.
No external recruitment.
-40% on MPS !!!!!
7M Instant Ink customers is not a lot, also HP has shortages on these ink cartridges.
Typically margins on instant ink as said to be lower than on XL or standard cartridges, the more they sell them the less they make (although they lock out compatibles).
But lots of share buy back, which is not too bad as the share price has gone from $22 to $16, it costs them less.
Overall, the worst Quarter yet in their history, with no growth strategy (yes they say they have but the facts prove they have not grown for years now).
Too late to sell?
Thanks to previous HP shenanigans, I have not purchased any HP kit at home for over a decade, and in the office for nearly a decade. I’m quite sure that I’m not alone in my thoughts on the matter. It’s taken a while, but it seems likely that enough others think my way that it has begun to affect their bottom line.
I do hope that those overpriced cartridges and devices which were ‘obsolete’ when Vista or 7 or 8 arrived, or, my fav, devices which failed repeatedly during the warranty period, were replaced under warranty (after a major fight) only to have the device fail again, and as the warranty was on the original device, were out of warranty even though they were less than three months old made HP a _lot_ of profit, that’s the last money they’ll see from me. That’s ‘devices’: two DVD/CD 5.25 internal drives and an inkjet. (One of the optical drives was my personal property, replaced by a Samsung device which is _still_ working, 11 years later, the other optical drive and the inkjet were company property, replaced by a LG and a Brother respectively.)
I’ll never buy a HP product again, and they have only themselves to blame for my attitude.
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